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Ontario Moves To Cap Rent Increases

McGuinty Government Proposes To Stabilize Rent Increase Guideline To Protect Tenants

Legislation to be introduced today would, if passed, ensure that the annual Rent Increase Guideline is capped at 2.5 per cent to protect tenants and families.

The proposed changes would also ensure that the annual Rent Increase Guideline never falls below one per cent.

Tenants would benefit from greater certainty that would ensure affordable and stable rents so they have safe and affordable housing. For landlords, this would ensure a fair return so they can properly maintain rental properties.

The guideline would continue to be based on the Ontario Consumer Price Index. If passed, the new guideline formula would take effect starting in 2013.

Ontario continues to build new affordable housing and repair existing units for families with housing needs. The province’s investments in affordable housing have created thousands of jobs and resulted in the construction and repair of 270,000 housing units and the provision of 35,000 rent supplements for Ontario families on fixed incomes.



  • The Rent Increase Guideline is the maximum amount that most landlords can increase a tenant’s rent during the year without making an application to the Landlord and Tenant Board.
  • One million tenant households in Ontario are covered by the annual Rent Increase Guideline.
  • The average annual Rent Increase Guideline from 2004 to 2011 was 1.89 per cent. The average annual Rent Increase Guideline from 1993 to 2003 was 3.17 per cent.
  • Ontario’s annual Rent Increase Guideline is based on the Ontario Consumer Price Index (CPI), which is a measure of inflation compiled monthly by Statistics Canada.


  • Kelly Baker
    Minister’s Office
  • Sonya Rolfe
    Housing Policy Branch

Ministry of Municipal Affairs and Housing



About the Author Durham REI

The Durham Real Estate Investor club began in 2008. Whether you are just starting your journey, have been investing for a few years, or are a well seasoned real estate investor the Durham Real Estate Investor Club has many benefits to you.

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